Good morning, friends. It’s a calm day on the regional logistics news front with updates from the UAE from the tracks and trade sectors and an update on Talabat’s forthcoming IPO. First, a heads up on what could be a very collaborative day in Turkey…

HAPPENING TODAY-

El Sisi touches down in Turkey: Egyptian President Abdel Fattah El Sisi lands in Turkey for the first time today since assuming office as the two countries seek to mend fences and build diplomatic and economic ties, Turkey’s Directorate of Communications confirmed. El Sisi is set to meet with Turkish president Recep Tayyip Erdogan and together chair the first meeting of the long-stalled high-level Strategic Cooperation Council between the two countries in the works since 2010.

On the agenda: Although details from the Turkish side are skimpy and Egypt has yet to release a statement on the trip, but the visit will include “discussions on all bilateral and international issues, as well as the signing of numerous agreements and MoUs in various areas,” talk show host Ahmed Moussa told his viewers on Ala Mas'ouleety earlier this week (watch, runtime: 2:21). Al Arabiya’s Turkey correspondent also told talk show host Amr Adib that economic relations and cooperation in areas such as tourism, transportation, and the defense industry, alongside expanding the countries’ joint freetrade agreement would be on the agenda.

The two countries are “opening a new chapter,” El Sisi said in a presser when Erdogan made his first visit in over a decade in February (watch, runtime: 15:15). The two sides have been working to mend a decade of tense relations triggered by a host of issues, including Erogan’s support for the Muslim Brotherhood, competing interests in Libya, and tensions over gas resources in the Eastern Mediterranean. Under this new relationship, the two countries are planning to boost annual bilateral trade from USD 6.6 bn in 2023 to USD 15 bn in the next few years.

WATCH THIS SPACE-

#1- Adnoc is gearing-up to tap the debt market with a USD-denominated bond issuance, featuring five-, 10-, and 30-year tranches, Reuters reported this week, citing the IFR. JP Morgan and Morgan Stanley were tapped as global coordinators to arrange investor meetings starting yesterday. The two-day roadshow for the offering wraps up today, Bloomberg adds. Adnoc set up an SPV for the debt sales two years ago.

In an expansionist mood: Adnoc is ramping up production here at home and pursuing high-profile acquisitions abroad, including a potential EUR 11.7 bn bid for German chemicals maker Covestro.

REMEMBER- Adnoc and Saudi Aramco reportedly began studying bids in July for Australian oil and gas firm Santos. The company has a market value of some USD 16.7 bn, and has liquefied natural gas projects in Australia, Papua New Guinea and Timor-Leste. The energy giant has also acquired a 10% stake in a concession in Mozambique's Rovuma basin, as well as an 11.7% stake in the first phase of sustainable liquefied natural gas (LNG) producer NextDecade's USD 18 bn Rio Grande LNG export facility in Texas.

ADVISORS- The offering will see BofA Securities, Citi, and First Abu Dhabi Bank act as active bookrunners, while our friends at HSBC will be passive bookrunners alongside Abu Dhabi Commercial Bank, Mizuho, and SMBC Nikko.

#2- The order book for NMDC Energy’s ADX IPO was 14x oversubscribed as day four of the subscription period came to a close yesterday, according to a statement. Today is the last day for investors to get their orders in.

BACKGROUND- NMDC is listing a 23% stake in its engineering, procurement, and construction unit NMDC Energy on the ADX. The transaction is due to wrap up on 11 September. Offer shares are priced at AED 2.80 each, valuing the transaction at AED 3.22 bn. NMDC’s board approved the IPO last month.

#3- Egypt is looking to boost its grain silo storage capacity by 76% by 2030, an increase to 6 mn tons, Asharq Business reported, citing comments by Egypt’s Deputy Minister of Supply Walid Abu Al-Magd. The plan is to localize Egypt’s silos and increase storage duration capacity from six to nine months over two phases.

The breakdown: The first phase will see the development of silos with a capacity of 1.4 mn tons by 2027 with a total investment of EGP 19 bn, while the second phase will target an additional 1.2 mn tons by 2030 with an EGP 15 bn investment. A company has also been established to localize the silo industry in the East Port Said economic zone.

We knew this was coming: The ministries of supply and investment have been looking into pouring investments into the country's silo infrastructure and increasing the storage capacity of silos owned by the Egyptian Holding Company for Silos and Storage. The SCZone also inked a MoU back in April with Poland-based grain protection and storage firm subsidiary Feerum Egypt to build a EGP 1.6 bn grain storage silo manufacturing factory in the East Port Said Industrial Zone. Egypt’s Supply and Internal Trade Ministry has inked a USD 56 mn agreement back in March with the French Development Agency to develop six grain silos in six governorates.

IN OTHER EGYPT NEWS- Egypt’s ENR will pay back its dues: Egyptian National Railways (ENR) has reached an agreement with the Egyptian General Petroleum Corporation (EGPC) to settle EGP 6 bn (c. USD 123 mn) in debt over five years, Asharq Business reported, citing a government official. The debt has been accumulating since 2016 on the back of the impact of economic reforms, including the surge in petroleum derivative prices, which affected the country’s railways particularly heavily given its reliance on diesel to operate.

MARKET WATCH-

#1- Oil prices fell in early morning trading, extending losses of over 4% from yesterday on the back of a possible resolution to the political dispute in Libya, Reuters reported. Brent crude futures for November fell 0.5% to USD 73.38 a barrel by 03.30 GMT while West Texas Intermediate (WTI) futures for October dropped 0.6% to USD 69.93 a barrel.

#2- Baltic index stays steady on upwards trajectory: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — rose 1.5% to 1,947 points on Tuesday, maintaining its highest increase since mid-July. The capesize index is buoying the index with an increase of 3.1% to 3,349 points, boosted by coal and bauxite shipments to China. The panamax index shed an additional 5 points coming in at 1,300 points, while the smaller supramax index lost another 9 points to 1,280 points.

DATA POINT-

Abu Dhabi’s non-oil exports rose to AED 40.14 bn in 2Q 2024, up 10% y-o-y from AED 36 bn in 2Q 2023, according to the latest data (pdf) from the emirate’s statistics center. This growth was driven by the robust activity in the business sector, with exports growing to AED 39.7 bn, largely due to an increase in gold exports, which boosted the value of goods classified under the Standard International Trade Classification (SITC) to AED 15.52 bn, the center said. On the import side, Abu Dhabi’s non-oil imports dipped 3% y-o-y in 2Q to AED 33.85 bn.

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CIRCLE YOUR CALENDAR-

Saudi Arabia will host SkyMove MENA on Tuesday, 10 September and Wednesday, 11 September in Riyadh. The event will gather global industry stakeholders, experts, and service providers to discuss challenges in the regional aviation industry.

The UAE will host the Intelligent Transport Systems World Congress from Monday, 16 September to Friday, 20 September in Dubai. The Congress is expected to welcome 20k participants to explore innovations in smart mobility and transportation technology.

Saudi Arabia will host the Saudi Maritime and Logistics Congress on Wednesday, 18 September and Thursday, 19 September in Dammam. The event will gather international industry leaders in the maritime sector to discuss a range of topics including interconnected logistics, supply chains, digitalization, decarbonization and workforce development.

Check out our full calendar at the bottom of this email for a comprehensive listing of upcoming news events and news triggers.

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